Case – East India Investments Holdings PTE Ltd Vs Mr Sudhindran Parikkal & Mr Chockalingam – NCLT Chennai bench.
Misconduct on the part of chartered accountants- NCLT refers the case to the institute of chartered accountants for investigation.
It was alleged by the petitioner that Respondents are being chartered accountants who certified the company documents such as DIR-12 and INC-22 without proper verification and without following the procedures laid down in the declaration contained in the certificates.
It was contended by the petitioners that the practising professionals colluded with company and certified the documents with the mala-fide intentions mainly for promoting personal gain and with an intention to defraud.
The petitioner considered the erred chartered accountants and included them in the petition and prayed for a direction to the Institute of Chartered Accountants of India to initiate disciplinary action against the erred professionals.
The chartered accountants averred their innocence and claimed immunity against false allegation as they certified the documents on the basis of the information provided by the company officials.
The petitioner argued that if such kind of misconduct is not taken note of , then , the same is likely to encourage other such chartered accountants to follow suit where the reputation of Chartered Accountants Institute will be finally in peril.
In this case, the NCLT referred the allegations on the chartered accountants involved and directed the Institute of Chartered Accountants of India to initiate the investigation of professional and other misconduct .
The above case is an eye opener to all the professionals who are certifying the forms for MCA to show utmost care and diligence and check for all the information needed before certifying forms for filing with the ROC.